Guocoland Earnings Hit China Singapore Growth Drives Higher Dividend Payout
GuocoLand, one of the leading property developers in Singapore, announced its financial results for the fiscal year ended June 30, reporting higher revenue across its development and investment segments. However, the company’s net profit for the year dropped by 17% compared to the previous year, primarily due to an allowance for its development properties in China. Despite this decline, the company’s board proposed a final dividend of 7 cents per share, which is higher than the consistent 6 cents paid annually over the past five years.
According to group CEO Cheng Hsing Yao, the company’s performance for FY2025 was robust, thanks to its “twin engines” of property development and property investment in Singapore, despite the uncertainties in the macroeconomic environment. He added that the company anticipates that its businesses in Singapore will remain resilient moving forward.
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In FY2025, GuocoLand’s property development revenue reached $1.56 billion, up 3% year-on-year. This increase was driven by the progressive recognition of sales from substantially sold residential projects in Singapore. Additionally, revenue from the property investment segment saw a 22% year-on-year growth, with higher rental contributions from Guoco Tower and Guoco Midtown.
As of June 30, Guoco Tower and Guoco Midtown were almost fully occupied, and another office property, 20 Collyer Quay, had a commitment rate of 98%. The retail spaces at Guoco Tower, Guoco Midtown, and the newly completed Guoco Midtown II maintained full occupancy.
The group’s residential projects in Singapore continued to experience strong demand, with Midtown Modern and Lentor Modern being fully sold during FY2025. Lentor Hills Residences, Lentor Mansion, and the newly launched Lentor Central Residences were substantially sold as of June 30. In August, the company launched Springleaf Residence, a 941-unit project in the Springleaf precinct, which achieved a 92% sell-through rate during its launch weekend at an average price of $2,176 per square foot based on caveats lodged.
However, the outlook in China remains subdued, with GuocoLand citing challenges in the market due to sector consolidation, geopolitical tensions, and broader economic headwinds. The company made provisions of $82.8 million for foreseeable losses on its Chinese development properties in FY2025, compared to $103.8 million in FY2024.
Cheng noted that while development earnings are more cyclical, depending on the timing of land acquisitions and project launches, GuocoLand’s investment portfolio provides steady recurring income. He added that the company will continue to exercise discipline and prudence while actively seeking new growth opportunities to ensure sustainable long-term value creation for shareholders.
As of August 28, GuocoLand’s shares were trading at $1.88, unchanged for the day but up 30.6% year-to-date. However, the counter trades at less than half its net asset value of $3.90 per share as of June 30. Potential buyers can check out the latest listings for properties such as Springleaf Residence, Lentor Central Residences, Lentor Mansion, Midtown Modern, and Lentor Hills Residences.
